EppsNet Archive: Luck

Bad Luck

3 Feb 2015 /

Throughout history, poverty is the normal condition of man. Advances which permit this norm to be exceeded — here and there, now and then — are the work of an extremely small minority, frequently despised, often condemned, and almost always opposed by all right-thinking people. Whenever this tiny minority is kept from creating, or (as sometimes happens) is driven out of a society, the people then slip back into abject poverty.

This is known as “bad luck.”

— Robert Heinlein

Thinking, Fast and Slow by Daniel Kahneman

12 Dec 2014 /

The notion that we have limited access to the workings of our minds is difficult to accept because, naturally, it is alien to our experience but it is true: You know far less about yourself than you feel you do.

 

A reliable way to make people believe in falsehoods is frequent repetition, because familiarity is not easily distinguished from truth.

 

It is the consistency of information that matters for a good story, not its completeness. Indeed, you will often find that knowing little makes it easier to fit everything you know into a coherent pattern.

 

The exaggerated faith in small samples is only one example of a more general illusion — we pay more attention to the content of messages than to information about their reliability, and as a result end up with a view of the world around us that is simpler and more coherent than the data justify.

 

Narrative fallacies arise inevitably from our continuous attempt to make sense of the world. The explanatory stories that people find compelling are simple; are concrete rather than abstract; assign a larger role to talent, stupidity, and intentions than to luck; and focus on a few striking events that happened rather than on the countless events that failed to happen.

 

Hindsight bias has pernicious effects on the evaluations of decision makers. It leads observers to assess the quality of a decision not be whether the process was sound but by whether its outcome was good or bad. . . . This outcome bias makes it almost impossible to evaluate a decision properly – in terms of the beliefs that were reasonable when the decision was made.

 

Stories of how businesses rise and fall strike a chord with readers by offering what the human mind needs: a simple message of triumph and failure that identifies clear causes and ignores the determinative power of luck and the inevitability of regression. These stories induce and maintain an illusion of understanding, imparting lessons of little enduring value to readers who are all too anxious to believe them.

 

For some of our most important beliefs we have no evidence at all, except that people we love and trust hold those beliefs.

 

Confidence is a feeling, which reflects the coherence of the information and the cognitive ease of processing it. It is wise to take admissions of uncertainty seriously, but declarations of high confidence mainly tell you that an individual has constructed a coherent story in his mind, not necessarily that the story is true.

 

We know that people can maintain an unshakable faith in any proposition, however absurd, when they are sustained by a community of like-minded believers.

 

The idea that the future is unpredictable is undermined every day by the ease with which the past is explained. . . Everything makes sense in hindsight . . . And we cannot suppress the powerful intuition that what makes sense in hindsight was predictable yesterday. The illusion that we understand the past fosters overconfidence in our ability to predict the future.

 

[Philip Tetlock, a psychologist at the University of Pennsylvania] interviewed 284 people who made their living “commenting or offering advice on political and economic trends. . . . In all, Tetlock gathered more than 80,000 predictions. . . . Respondents were asked to rate the probabilities of three alternative outcomes in every case: the persistence of the status quo, more of something such as political freedom or economic growth, or less of that thing.

The results were devastating. The experts performed worse than they would have if they had simply assigned equal probabilities to each of the three potential outcomes. In other words, people who spend their time, and earn their living, studying a particular topic produce poorer predictions than dart-throwing monkeys who would have distributed their choices evenly over the options. Even in the region they knew best, experts were not significantly better than nonspecialists.

 

Rehearse the mantra that will get you significantly closer to economic reality: you win a few, you lose a few.

 

Nothing in life is as important as you think it is when you are thinking about it.

 

During the last 10 years we have learned many new facts about happiness. But we have also learned that the word happiness does not have a simple meaning and should not be used as if it does. Sometimes scientific progress leaves us more puzzled than we were before.


The Hedgehog and the Fox

6 Dec 2014 /

Stuffed hedgehogs outside a store in Athens

Hedgehogs “know one big thing” and have a theory about the world: they account for particular events within a coherent framework, bristle with impatience toward those who don’t see things their way, and are confident in their forecasts. They are also especially reluctant to admit error. For hedgehogs, a failed prediction is almost always “off only on timing” or “very nearly right.” They are opinionated and clear, which is exactly what television producers love to see on programs. Two hedgehogs on different sides of an issue, each attacking the idiotic ideas of the adversary, make for a good show.

Foxes, by contrast, are complex thinkers. They don’t believe that one big thing drives the march of history . . . Instead the foxes recognize that reality emerges from the interactions of many different agents and forces, including blind luck, often producing large and unpredictable outcomes. . . . They are less likely than hedgehogs to be invited to participate in television debates.

Daniel Kahneman, Thinking, Fast and Slow

Forget mistakes, forget failures, forget everything, except what you’re going to do now and do it. Today is your lucky day. — Will Durant


Some Links

26 Jan 2014 /

Pug Meetup

17 Jul 2011 /

There was a pug meetup at the Irvine dog park today. Here’s a picture of me with some of my pug friends.

Pug meetup

The funny thing is we didn’t even know there was a pug meetup. We just showed up and there it was!

It’s a lucky day for me! I’m going to buy a lotto ticket LOL!


I Would Like to Do First-Class Work

23 Aug 2010 /

I have to get you to drop modesty and say to yourself, “Yes, I would like to do first-class work.” Our society frowns on people who set out to do really good work. You’re not supposed to; luck is supposed to descend on you and you do great things by chance. Well, that’s a kind of dumb thing to say. I say, why shouldn’t you set out to do something significant. You don’t have to tell other people, but shouldn’t you say to yourself, “Yes, I would like to do something significant.”


Why People Don’t Succeed

12 Aug 2010 /

In summary, I claim that some of the reasons why so many people who have greatness within their grasp don’t succeed are: they don’t work on important problems, they don’t become emotionally involved, they don’t try and change what is difficult to some other situation which is easily done but is still important, and they keep giving themselves alibis why they don’t. They keep saying that it is a matter of luck.


Bad is Good

2 Dec 2009 /

I saw a guy I used to work with on LinkedIn today . . .

The thing I remember most about him is that he believed it was bad luck to wish good fortune on someone. For example, if you said to him “Have a good day,” he believed that would in fact cause him to have a bad day.

When I worked with him, if I saw him as I was leaving the office, I’d say “Have a crummy evening.” And he’d say, “Thank you.”

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